EUR/USD Price Analysis: Posts Fresh Five-month High Near 1.1120 Ahead of US Data

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

■  EUR/USD rises toward the major resistance at the 1.1150 level.

■  Technical indicators suggest a bullish momentum to reach the psychological level of 1.1200.

■  The psychological level of 1.1100 could act as key support following the seven-day EMA at 1.1041.


EUR/USD maintains its winning streak, with the Euro (EUR) gaining ground against the subdued US Dollar (USD). This trend is likely influenced by the anticipated dovish stance of the US Federal Reserve (Fed) on the interest rate trajectory. The EUR/USD pair trades around the 1.1110 level during the Asian session on Thursday.


The Moving Average Convergence Divergence (MACD) signals an overall positive momentum for the EUR/USD pair. The MACD line's position above the centerline and the divergence above the signal line indicates a bullish sentiment.


This positive momentum could inspire bulls of the EUR/USD pair to aim for a breakthrough above the five-month high at 1.1122. If successful, it may pave the way for the EUR/USD pair to explore major resistance at 1.1150, following the next significant level at the psychological level of 1.1200.


In addition to the positive momentum indicated by the MACD, the lagging indicator 14-day Relative Strength Index (RSI) positions above the 50 mark. This suggests a confirmation of the potential upward trend in the EUR/USD pair.


On the downside, the EUR/USD pair could find support at the psychological level of 1.1100, following the seven-day Exponential Moving Average (EMA) at 1.1041. A break below the EMA could lead the pair to test the psychological support region around 1.1000, further navigating towards the region around the 23.6% Fibonacci retracement level at 1.0964.

EUR/USD Daily Chart, Source: FXStreet

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Japanese Yen remains on the front foot amid risk-off mood, BoJ’s hawkish outlookThe Japanese Yen (JPY) kicks off the new week on a positive note amid the global flight to safety, fueled by renewed trade war fears, and the Bank of Japan's (BoJ) hawkish interest rate hike on Friday.
Author  FXStreet
2 hours ago
The Japanese Yen (JPY) kicks off the new week on a positive note amid the global flight to safety, fueled by renewed trade war fears, and the Bank of Japan's (BoJ) hawkish interest rate hike on Friday.
placeholder
Australian Dollar remains subdued following China’s PMI, fresh stimulus measuresThe Australian Dollar (AUD) ends its three-day winning streak against the US Dollar (USD), with the AUD/USD pair trading subdued following the release of mixed Chinese Purchasing Managers' Index (PMI) data on Monday.
Author  FXStreet
3 hours ago
The Australian Dollar (AUD) ends its three-day winning streak against the US Dollar (USD), with the AUD/USD pair trading subdued following the release of mixed Chinese Purchasing Managers' Index (PMI) data on Monday.
placeholder
Forex Today: Japanese Yen rises on BoJ hike, attention turns to PMI reportsHere is what you need to know on Friday, January 24: The Japanese Yen (JPY) gathers strength against its major rivals early Friday following the Bank of Japan's (BoJ) decision to raise the policy rate by 25 basis points.
Author  FXStreet
Jan 24, Fri
Here is what you need to know on Friday, January 24: The Japanese Yen (JPY) gathers strength against its major rivals early Friday following the Bank of Japan's (BoJ) decision to raise the policy rate by 25 basis points.
placeholder
Australian Dollar appreciates as Trump asks for rate cutsThe Australian Dollar (AUD) continues its upward momentum against the US Dollar (USD) for the third consecutive session on Friday.
Author  FXStreet
Jan 24, Fri
The Australian Dollar (AUD) continues its upward momentum against the US Dollar (USD) for the third consecutive session on Friday.
placeholder
Japanese Yen drifts lower as traders await the highly-anticipated BoJ decisionThe Japanese Yen (JPY) ticks lower during the Asian session on Friday amid some repositioning ahead of the highly-anticipated Bank of Japan (BoJ) policy decision.
Author  FXStreet
Jan 24, Fri
The Japanese Yen (JPY) ticks lower during the Asian session on Friday amid some repositioning ahead of the highly-anticipated Bank of Japan (BoJ) policy decision.